Shorter Company had originally expected to earn operating income of $130,000 in the coming year. Shorter's degree of operating leverage is 2.4. Recently, Shorter revised its plans and now expects to increase sales by 20% next year. What is the percent change in operating income expected by Shorter in the coming year?
Q: Need answer please
A: Step 1: Step 2: Step 3: Step 4:
Q: The operating profit margin (EBIT/sales) of ABC, Inc. is 18%, its TATO ratio (Sales/TA) is 1.50x,…
A: We will first calculate the company's ROA and then use that to find its ROE.Given information:-…
Q: Correct answer
A: Question: 1Explanation of Sales Revenue: This refers to the total amount of money a company earns…
Q: Do not use chatgpt.
A: Key references: Biology
Q: need help with calculation and provide correct option
A: Step 1: Identify Relevant InformationSpecial order price: $3 per unitVariable cost per unit: $1New…
Q: On January 1, 2020, A Corp. had the following investments: Classification Investment Market Value…
A: First, we need to identify the classification of each investment. According to the information…
Q: Question: |.Algers Company produces dry fertilizer. Compute the fixed overhead spending variance. At…
A: Question 1: Compute the Fixed Overhead Spending VarianceContext: Algers Company produces dry…
Q: None
A: To determine how much more income tax Song will pay if Congress increases her average tax rate from…
Q: Please Provide answer
A: Detailed explanation:Approaching the question, my first thought was to meticulously dissect the…
Q: ?
A: Problem 1: Salesperson's EarningsA salesperson receives:- Base salary: $1,840 per month- Commission:…
Q: Daniel is considering selling two stocks that have not performed well over recent years. 6 friend…
A: If you have any problem let me know in comment box thankyou.
Q: I want to correct solution
A: Step 1: Introduction to the Job CostsLike processing costing, the job-order costing's manufacturing…
Q: Need Correct ANSWER
A:
Q: NEED HELP !!
A: Calculations:Original purchase price of equipment: $35,000Accumulated depreciation at time of sale:…
Q: Solve the question
A: To calculate the merchandise inventory on December 31, 2014, using the lower-of-cost-or-market (LCM)…
Q: None
A: Step 1: Define Accounting EquationThe accounting equation represents that each transaction affects…
Q: need answer please provide this one
A: Step 1: Definition of the Cost of goods sold (COGS):Cost of goods sold is the bearing value of goods…
Q: None
A: John Dunn Realty CompanyBalance SheetJuly 31, 2021(Amounts in millions)AssetsLiabilities and…
Q: A company requires $500,000 in assets and will be 100% equity financed. If the Earnings Before…
A:
Q: None
A: Step 1: Define Cash DisbursementCash disbursements are the total cash payments that a company makes.…
Q: Leon Tyler has a balance on his VISA card balance. He plans to pay it off in equal end-of-month…
A: Explanation of Present Value (PV)Present Value (PV) refers to the current balance or principal…
Q: Solve this problem
A: Step 1: Define Notes ReceivableNotes receivable is a negotiable instrument that contains a promise…
Q: 17
A: Step 1: Identify the given valueAdjusted basis = $9,000Fair Market Value = New machine worth =…
Q: You have been hired to value a new 30-year callable, convertible bond. The bond has a 7 percent…
A: Step 1: The calculation of the conversion premium of bond Given:Conversion Price = $60Current…
Q: 1. Daniel Rockland arrived at the following tax information: Gross salary, $52,740 Dividend income,…
A: Federal Taxable Income…
Q: Do not use chatgpt
A: Explanation of Split-off Point: The split-off point refers to the stage in a production process…
Q: Fama's Llamas has a weighted average cost of capital of 11 percent. The company's cost of equity is…
A:
Q: Fowler Company is a company that produces customized bicycles. It follows job-order costing. During…
A: Job 3Job 4Job 5Direct materials $80 $75 $85 Direct labor 100 110 95 Applied overhead 120 132…
Q: Solve this question
A: Given:Standard Rate: $14.10Actual Hours: 46,000 hoursActual labor cost: $676,200Units completed:…
Q: 6
A: Inventory is valued using the LCM principle, which guarantees that the cost is recorded at the lower…
Q: Explaining
A: The lower cost or market (LCM) method requires comparing the cost and replacement cost for each part…
Q: I need answer
A: Calculating the price-earnings ratio (P/E) for Whispering Winds Corp. and estimating the stock price…
Q: control accounts. 9: IAS 2 IAS 8 IAS 10 IAS 12 The following transactions took place decemer 23…
A: Part 1: AnswerTrade Receivables Control Account:DateDetailsDebit (DR)Credit (CR)1 Nov 23Balance…
Q: Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the…
A: a. What is the net present value (at the discount rate of 10%) of this project? (Negative value…
Q: Don't use Ai
A: Answer a. Necessary Adjustment on December 31, 2016:According to accounting standards, you would…
Q: Comparing ABC and Plantwide Overhead Cost Assignments Castle Dale Company uses activity-based…
A: To calculate the activity rate, we divide the total cost of each activity by the total amount of…
Q: Answer with explanation
A: In accounting, period costs are the expenses that are not tied directly to the production of goods…
Q: Give me accurate answer
A: 1.Compute for the sales.Sales = Earnings after taxes / Net profit marginSales = 25,000 / 4.5%Sales =…
Q: Give true answer the question
A: To find the total market value of the firm's equity, we use the following formula: Market Value of…
Q: solve
A: Step 1: Step 2: Step 3: Step 4:
Q: Hi expart give correct answer
A: To find the fixed manufacturing overhead per year, we need to calculate the unit product cost under…
Q: How does an accounting system operate
A: An accounting system is a method used by businesses to track financial transactions and to report on…
Q: a)Analyseand evaluatethe financial performance over the twoyear period by using appropriate ratios:…
A: Part 2: ExplanationStep-by-Step CalculationsLiquidity Ratios:Current Ratio for 2023 = Current Assets…
Q: not use ai please
A: Part a: Cash Flow Hedge AccountingDateAccountDebit (USD)Credit (USD)DescriptionDecember 1, 2020No…
Q: kau.3 answer must be in table format or i will give down vote
A: Note 1Current ratio = Current assets/Current liabilitiesCurrent ratio = 4,440/2,100Current ratio =…
Q: None
A: Step 1: Income statement is prepared at the end of accounting year to know the profitability of…
Q: Provide answer
A: 1. Towson Company's 2018 Accrual Basis Net Income CalculationRevenue:Credit Sales: $60,000Cash…
Q: Do not use Ai
A: To solve this problem, we need to calculate the present value of a 3-year note with an 8% annual…
Q: Do not use ai
A: Step 1:Total profit=120,000,000-(50,000,000+15,000,000+12,000,000)=43,000,000 Step 2: Tax=25% of…
Q: Explain how analyzing financial information contributes to decision making needs in a company?
A: Financial information is the backbone of any business decision-making process. It provides a clear…
None
Step by step
Solved in 2 steps
- Suppose the company has just the opposite news and now expects unit sales for August, September, and October to be double (200%) the original estimates. What effect will this have on the company’s net income and borrowing? Explain your findings.Data on Wentz Inc. for last year are shown below, along with the payables deferral period (PDP) for the firms against which it benchmarks. The firm's new CFO believes that the company could delay payments enough to increase its PDP to the benchmarks' average. If this were done, by how much would payables increase? Use a 365-day year. Cost of goods sold = $74,000 Payables = $5,000 Payables Deferral Period (PDP) = 24.66 Benchmark Payables Deferral Period = 34.00 Please explain process and show calculations.A product has sales of $7M this year, but sales are expected to decline at 10% per year until it is discontinued after year 5. If the firm’s interest rate is 15%, calculate the PW of the revenues.
- The Frozen North Construction Company would like to forecast its minimum volume of work (turnover) in order to “break even” (i.e., cover its corporate overheads) for the coming year. The company’s previous year’s corporate overheads were $900,000. The company anticipates 22% inflation and 6% growth in the firm for the coming year. It also expects to achieve a gross margin of 13% on its projects, based on old experience. The company defines gross margin as a percentage of revenue (i.e., selling price). Determine the minimum volume of work, which will allow the Frozen North Company to break even at the end of the coming year.Consider the following scenario: Blue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $200,000 and $2,280,656 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Blue Hamster Manufacturing Inc. Income Statement for Year Ending December…Consider the following scenario: Green Caterpillar Garden Supplies Inc.’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year. 1. Green Caterpillar is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company’s operating costs (excluding depreciation and amortization) remain at 60% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company’s tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Green Caterpillar expects to pay $100,000 and $1,759,500 of preferred and common stock dividends, respectively. A. Complete the Year 2 income statement data for Green Caterpillar, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Green Caterpillar…
- Consider the following scenario: Green Caterpillar Garden Supplies Inc.'s Income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. Green Caterpillar is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before Interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 60% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Green Caterpillar expects to pay $100,000 and $1,759,500 of preferred and common stock dividends, respectively. Complete the Year 2 Income statement data for Green Caterpillar, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Net sales Less: Operating costs, except depreciation…Ram Company had $1,000,000 of sales with a CM ratio of 30% and fixed expenses of $250,000 this year. Assume that the company’s sales will increase by $150,000 next year. If there is no change in fixed expenses, by how much will net operating income increase? a) 45,000 b) 60,000 c) 30,000 d) 15,000A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 1.Calculate the payback period for both products in years and months, not as a decimal. Please present answer to nearest half a month.
- The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $200,000 per year for the next 5 years, and it forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 10% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $68 and variable costs at 80% of revenue. The company’s policy is to pay out two-thirds of net income as dividends and to maintain a book debt ratio of 20% of total capital. INCOME STATEMENT, 2019(Figures in $ thousands) Revenue $ 1,800 Fixed costs 68 Variable costs (80% of revenue) 1,440 Depreciation 80 Interest (8% of beginning-of-year debt) 24 Taxable income 188 Taxes (at 40%) 75 Net income $ 113 Dividends $ 75 Addition to…The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $200,000 per year for the next 5 years, and it forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 10% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $60 and variable costs at 80% of revenue. The company’s policy is to pay out two-thirds of net income as dividends and to maintain a book debt ratio of 20% of total capital. INCOME STATEMENT, 2019(Figures in $ thousands) Revenue $ 1,800 Fixed costs 60 Variable costs (80% of revenue) 1,440 Depreciation 80 Interest (8% of beginning-of-year debt) 24 Taxable income 196 Taxes (at 40%) 78 Net income $ 118 Dividends $ 79 Addition to…The following tables contain financial statements for Dynastatics Corporation. Although the company has not been growing, it now plans to expand and will increase net fixed assets (i.e., assets net of depreciation) by $200,000 per year for the next 5 years, and it forecasts that the ratio of revenues to total assets will remain at 1.50. Annual depreciation is 10% of net fixed assets at the beginning of the year. Fixed costs are expected to remain at $60 and variable costs at 80% of revenue. The company's policy is to pay out two- thirds of net income as dividends and to maintain a book debt ratio of 20% of total capital. INCOME STATEMENT, 2019 (Figures in $ thousands) Revenue $1,800 Fixed costs Variable costs (80% of revenue) Depreciation Interest (8% of beginning-of-year debt) Taxable income Taxes (at 40%) 60 1,440 80 24 196 78 Net income 118 Dividends Addition to retained earnings $ 79 $ 39 BALANCE SHEET, YEAR-END (Figures in $ thousands) 2019 Assets Net working capital Fixed assets…
